annual general meeting - gold road€¦ · company’s actual performance, results and achievements...
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ANNUAL GENERAL MEETING
28 MAY 2020DUNCAN GIBBS – MANAGING DIRECTOR & CEO
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DISCLAIMER IMPORTANT NOTICES
Nature of this document: The purpose of this presentation is to provide general information about Gold Road Resources Limited (the ‘Company’). Unless otherwise stated herein, the information in this presentation is based on the Company’s own information and estimates. In attending this presentation or viewing this document you agree to be bound by the following terms and conditions. This document has been prepared by the Company. Information in this document should be read in conjunction with other announcements made by the Company to the Australian Securities Exchange and available at www.goldroad.com.au or www.asx.com.
Not an offer: This presentation is for information purposes only and does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer topurchase or subscribe for, any securities in the Company in any jurisdiction. This presentation and its contents must not be distributed, transmitted or viewed by any person in anyjurisdiction where the distribution, transmission or viewing of this document would be unlawful under the securities or other laws of that or any other jurisdiction.
Not financial product advice: This presentation does not take into account the individual investment objectives, financial situation and particular needs of each of the Company’sShareholders. You may wish to seek independent financial and taxation advice before making any decision in respect of this presentation. Neither the Company nor any of its relatedbodies corporate is licensed to provide financial product advice in respect of the Company’s securities or any other financial products.
Forward-looking statements: Certain statements in the presentation are or may be “forward-looking statements” and represent the Company’s intentions, projections, expectations orbeliefs concerning, among other things, future operating and exploration results or the Company’s future performance. These forward looking statements speak, and the presentationgenerally speaks, only at the date hereof. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks anduncertainties, and are necessarily based on assumptions, which may cause the Company’s actual performance, results and achievements in future periods to differ materially from anyexpress or implied estimates or projections. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Relevant factors which may affect theCompany’s actual performance, results and achievements include changes in commodity price, foreign exchange fluctuations and general economic conditions, increased costs anddemand for production inputs, the speculative nature of exploration and project development, diminishing quantities or grades of reserves, political and social risks, changes to laws andregulations, environmental conditions, and recruitment and retention of personnel.
Disclaimer: No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. Except forstatutory liability which cannot be excluded, each of the Company, its directors, officers, employees, advisers and agents expressly disclaims any responsibility for the accuracy, fairness,sufficiency or completeness of the material contained in this presentation, or any opinions or beliefs contained in this document, and excludes all liability whatsoever (including innegligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. The Company isunder no obligation to update or keep current the information contained in this presentation or to correct any inaccuracy or omission which may become apparent, or to furnish anyperson with any further information. Any opinions expressed in the presentation are subject to change without notice.
Unverified information: This presentation may contain information (including information derived from publicly available sources) that has not been independently verified by the Company.
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DELIVERING SHAREHOLDER VALUE
Australia’s Newest Gold Producer
Long life, low cost production at Tier 1 gold mine1
First gold poured June 2019
50:50 JV partner Gold Fields a proven global miner
12 year mine life at ~300 kozpa
Successful Explorer in Undercover and Underexplored Belts
Extensive (~5,000 km2) and prospective Yamarna exploration tenements (Gold Road 100%)
Cygnus JVs 75% interest in underexplored Greenstone belt
Gilmour Discovery on 100% owned tenements
* 100% basis1 Refer to ASX announcement dated 6 December 2019. Tier 1: Greater than 10 year mine life; greater than 300,000 ounces per annum; greaterthan 3.5 million ounce Ore Reserve and costs at the lower end of the cost curve
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CORPORATE PROFILE
Tim Netscher Non-Executive Chairman
Duncan Gibbs Managing Director & CEO
Justin Osborne Executive Director – Discovery & Growth
Sharon Warburton Non-Executive Director
Brian Levet Non-Executive Director
Carol Marinkovich Joint Company Secretary
Hayden Bartrop Joint Company Secretary
BOARD OF DIRECTORS
SHAREHOLDERS
30%
34%
2%13%
18%
1%1%1%
North America
Retail
Broker/Advisors
UK & European Instos
Australian Instos
Corporate
Board & Management
Rest of World
CAPITAL STRUCTURE
1 As at 31 March 20202 As at 20 May 2020, based on last close price of A$1.775 per share3 GOR joined the GDX on 17 April 20204 GOR Attributable 5 FX: 1AUD = US$0.65
ANALYST RESEARCH SUBSTANTIAL SHAREHOLDERS
ArgonautBell PotterCanaccordHartleysMacquarieRBC
Van Eck 12%BlackRock 8%Vanguard 5%
INDICESASX200, GDXJ ,
MSCI, GDX3
ISSUED SHARES 880M1
PERFORMANCE RIGHTS 5M1
MARKET CAP A$1,560M2 $US1,015M5
CASH & EQUIVALENTS A$115M1 US$75M5
DEBT DRAWN (OF 100M FACILITY) A$80M1 US$52M5
HEDGING 91.5 koz @ A$1,853/oz1 US$1,2045
ORE RESERVES 1.9 Moz4
MINERAL RESOURCE 3.6 Moz4
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LEACH & CIL TANKS
PRE-LEACH THICKENERS
ROM
GRINDING – 15MW SAG & BALL MILL
COS
OFFICES
LAYDOWN AREA
SETTLING POND
POWERHOUSE
GRUYERE GOLD MINEAUSTRALIA’S NEWEST GOLD PRODUCER
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SAG &BALL MILLS
*100% basis unless otherwise stated. ** 2019 costs quoted since commercial production1Rehabilitation includes accretion and amortization; 2Gold Road’s 50% share; 3Calendar Year 2019, 4Gruyere gold production since first gold to 31 March 2020 on 100% basis
Operation (100% basis) Unit March 2020 Qtr 20193
Ore Mined kt 1,837 6,712Waste Mined kt 2,783 13,089Strip Ratio w:o 1.51 1.95Grade g/t 1.06 0.87Ore milled kt 1,926 3,278Head Grade g/t 1.05 1.05Recovery % 94.1 93.3Gold Produced oz 59,595 99,130Cost SummaryMining A$/oz 179 140Processing A$/oz 520 464G&A A$/oz 92 73Ore Stock & GIC Movements A$/oz 33 40By-product Credits A$/oz (2) (2)Cash Cost A$/oz 822 715Royalties, Refining, Other A$/oz 77 65Rehabilitation1 A$/oz 19 23Sustaining Leases A$/oz 100 85Sustaining Capital & Exploration A$/oz 117 214All-in Sustaining Costs A$/oz 1,135 1,102**
Sales (50% share)2 Unit March 2020 Qtr 20193
Gold Sold oz 31,700 49,565Average Sales price A$/oz 2,001 2,038
GRUYERE GOLD MINE2019 A YEAR OF TRANSFORMATION
First gold poured June 2019
Commercial Production attained September 2019
Capital Cost of A$610M below budget of A$621M
2019 production of 99,130 ounces at top of guidance
2019 AISC of A$1,102 per ounce meets guidance
158,725 ounces produced to date at low AISC4
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Company AISC Guidance 2020 (A$/oz)
AISC (A$/oz)
GRUYERE GOLD MINELOW COST PRODUCTION
Source: RBC Capital Markets, SNL Metals & Mining, Company Announcements. Annual AISC as reported at 3 April 2020 for 2020 financial year
COVID-19
Not ‘’business as usual’’ but guidance unchanged
2020 Annual Guidance unchanged1
250,000-285,000 ounces (100% basis)
AISC A$1,100-A$1,200/oz attributable (GOR) 1Refer to ASX announcement dated 12 February 2020
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GRUYERE JVUNLOCKING GROWTH
1 100% Basis. Refer to ASX announcement dated 12 February 2020
Resource & Reserve Category (100% basis)
Tonnes (Mt) Grade (g/t Au) Moz Au
M&I Mineral Resource (M,I) 144 1.32 6.12
Total Mineral Resource (M,I,I) 154 1.34 6.62
Ore Reserve (P,P) 93 1.24 3.72
Measured & Indicated Resource growth of 29% to 6.1 Moz1
M&I ounces increased by 1.2 Moz
M&I grade increased to 1.32 g/t Au
2020/21 focus on growing Gruyere JV 3.7 Moz Reserve
Convert M&I Resource into A$1,600/oz Reserve
Grow Reserve through optimized economics
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GRUYERE JV100% OWNED GOLD ROAD
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SOUTHERN PROJECT AREAGILMOUR RESOURCE – 258,000oz at 3.1g/t Au
Note: Refer to ASX announcement dated 4 December 2019
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STRONG BALANCE SHEETENHANCED LIQUIDITY AND SMALLER HEDGE BOOK
SAG &BALL MILLS
FIRST GOLD BARSNote: Refer to ASX announcement dated 21 April 2020
Net Cash of A$35M at 31 March 2020 with Cash and equivalents of A$115M. Debt position of A$80M
A$50M debt repayment to close Working Capital Facility
To ensure a strong liquidity position with COVID-19 risks, drew down A$80M from the A$100M Revolving Credit Facility and pre-
delivered 5,800 ounces into June quarter forward sales contracts.
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THE SHARE PRICE JOURNEY
FIRST GOLD
COMMISSIONED
GOLD FIELDS SALE
GDXJ & ASX 200
GILMOURRESOURCE
GRUYERE DRILLING
COMMERCIAL PRODUCTION
DEC 19 QTR REPORT
COVID-19
GDX
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OUR STRATEGY Deliver world class operating performance
Grow margins and mine life
DELIVER SHAREHOLDER
VALUE
GRUYERE
ESG
DISCOVERY CORPORATEDEVELOPMENT
ORGANISATIONAL CAPABILITY
Discover gold resources that transform the company
Build and maintain a project pipeline for growth
Capital management, people and business systems to support the strategy
Operate safely and care for our people, stakeholders & environment
Position Gold Road as an ESG market leader
Value accretive transformational M&A
Grow & Diversify production base
Quality, low risk assets
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DELIVER SHAREHOLDER
VALUE
GRUYERE
ESG
DISCOVERY CORPORATEDEVELOPMENT
ORGANISATIONAL CAPABILITY
GRUYERE MINE Deliver world class operating performance
Grow margins and mine life
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GRUYERE MINE OPTIMISATION GROWING A HIGH MARGIN OPERATION
Note: Refer to ASX announcement dated 9 September 2019 and 12 February 2020
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MEANINGFUL DISCOVERY
DELIVER SHAREHOLDER
VALUE
GRUYERE
ESG
DISCOVERY CORPORATEDEVELOPMENT
ORGANISATIONAL CAPABILITY
Discover gold resources that transform the company
Build and maintain a project pipeline for growth
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EXPLORATIONSTRATEGY OF MEANINGFUL DISCOVERY
Targeting 100% owned operation to add 100-150 kozpa
Exploring for >1 Moz discoveries on 100% ground
Increased understanding and technical capability
Strategy aligned to a discovery that ‘moves the dial’
Focus on high priority targets in Southern Project Area
Yamarna offers a unique opportunity, combining
An under-explored ‘frontier’ greenstone belt
Favourable global mining jurisdiction of Western Australia
Low population density and supportive local community
Development optionality with Gruyere
Note: Refer to ASX announcement dated 12 February 2020. Gold Road share $25.5M
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EXPLORATIONSOUTHERN PROJECT – PRIORITY TARGETS
Southern Project Area
Historical data compilation and acquisition
Revised geology and targeting completed in 2019
Thickest segment of greenstone – greatest prospectivity
~75% of A$26M 2020 budget
High priority 2020 targets include Hirono – 18 km drilling completed – awaiting results
Bluebell – 18 km of drilling completed across 10 km of Yamarna Shear
Savoie – Large 15 km anomaly along granite contact
Goat-Redback – 12 km drilling completed on major flexure in regional shear
Note: Refer to ASX announcement dated 12 February 2020. Gold Road share $25.5M. Refer to ASX announcement dated 7 April 2020
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SOUTHERN PROJECT AREAGILMOUR – HANGINGWALL DRILLING 2020
Note: Refer to ASX announcement dated 7 April 2020
258,000 oz Maiden Resource in 2019
Drill testing hangingwall veins
5.62m at 36.64 g/t Au
4.34m at 13.04 g/t Au
Potential extension of Main Lode
16.28m at 12.98 g/t Au
IMPROVED GEOLOGICAL UNDERSTANDING AT GILMOUR AND YAMARNA
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Lake Grace JV & Yandina JV (75%)
Underexplored Greenstone belt
Targeting crustal scale shear zones
2020 Activity
Completed 20,000m aircore drilling programme
Target Hammerhead geochemical anomaly
Exploration suspended to support government COVID-19 measures
SOUTH-WEST YILGARN3,400 km² PROJECT AREA
Note: Refer Cygnus ASX Announcements 22 Feb 2018, 1 July 2019 and 15 October 2019. Refer Gold Road ASX announcement dated 7 April 2020.
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CORPORATE DEVELOPMENT
DELIVER SHAREHOLDER
VALUE
ESG
DISCOVERY
ORGANISATIONAL CAPABILITY
GRUYERE
CORPORATEDEVELOPMENT
Value accretive transformational M&A
Grow & Diversify production base
Quality, low risk assets
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CORPORATE DEVELOPMENTDISCIPLINED APPROACH TO ACCRETIVE M&A
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DELIVER SHAREHOLDER
VALUE
DISCOVERY
GRUYERE
CORPORATEDEVELOPMENT
ESGORGANISATIONAL
CAPABILITY
ORGANISATIONAL CAPABILITY
Capital management, people and business systems to support the strategy
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STRONG TEAM & BALANCE SHEET
CAPITAL MANAGEMENT FOR GROWTH & RETURNS
Maintain a strong liquid balance sheet
Pay down debt and build cash balance of $50-100M
Capacity to fund new mine development
Invest in value accretive opportunities
Potential for future returns
BUILDING ORGANISATIONAL CAPABILTY
People create the Company: building management and technical skills
Business systems commensurate with a ASX 200 Company
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ENVIRONMENT | SOCIAL | GOVERNANCE
DELIVER SHAREHOLDER
VALUE
DISCOVERY
ORGANISATIONAL CAPABILITY
GRUYERE
ESG
CORPORATEDEVELOPMENT
Operate safely and care for our people, stakeholders & environment
Position Gold Road as an ESG market leader
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> 3 million manhours LTI free Gruyere construction
Gruyere Total Recordable Injury Frequency Rate 3.7
Gruyere obtained ISO45001 certification
“Vital Behaviours” Program
Mental Health First Aid trained
Obtaining Cyanide Management Code and ISO certifications
Tailings Dam, low risk life of mine design (Integrated Waste Landform)
Gruyere utilises saline water resources
Low carbon emissions from gas power
Solar Power installation at Yamarna camp, evaluating opportunities at Gruyere
Gruyere employment*:
350 site personnel
9% indigenous, 21% female
Strong relationship with the Yilkapeople
Gold Road 30% female employees
Gold Road Taxes & Royalties contributes >A$50M pa 1
Established corporate culture that values integrity and ethical behaviour
AIRA Award 2 recognising proactive and transparent stakeholder engagement
Aligned to ASX Corporate Governance principles
External & Internal audit
1 Estimate based on A$2,300/oz gold price. Taken as average over LOM
*Figures are pre-COVID-19 Action Plan
OPERATING SAFELY
CARING FOR THEENVIRONMENT
SUPPORTING OURCOMMUNITY
RESPONSIBLEGOVERNANCE
2 Best Investor Relations: Mid Cap ASX 200 2019
Gold Road Gruyere JV
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DELIVERING SHAREHOLDER VALUE
INVESTOR RELATIONS ENQUIRES Duncan Hughes: Manager – Corporate Development & Investor RelationsTel: +61 8 9200 1600 | [email protected]
STRENGTHStrong business and balance sheet
MARGINConsistent low-cost production for >11 years
GROWTHGruyere Operational ExcellenceDiscoveryCorporate Development
SHAREHOLDER RETURNS*TSR (12 mo): ~75%TSR (from Gruyere discovery): ~1,500%*Total shareholder returns from 21 May 2019 to 20 May 2020: 101c – 178c
Total shareholder returns from 11 October 2013 to 20 May 2020: 11c – 178c
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APPENDICES
Competent Persons Statements Mineral Resource Statement Ore Reserve Statement
For all Investor Relations enquiresDuncan Hughes
Manager – Corporate Development & Investor Relations
Tel: +61 8 9200 1600 | [email protected]
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COMPETENT PERSONS STATEMENTExploration Results
The information in this report which relates to Exploration Results is based on information compiled by Mr Justin Osborne, Executive Director - Discovery and Growth for Gold Road. Mr Osborne is an employee of Gold Road, and a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM 209333). Mr Osborne is a shareholder and a holder of Performance Rights. Mr Osborne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Osborne consents to the inclusion in the report of the matters based on this information in the form and context in which it appears
Mineral Resources
The information in this report that relates to the Mineral Resource estimation for Gruyere is based on information compiled by Mr Mark Roux. Mr Roux is an employee of Gold Fields Australia, is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM 324099) and is registered as a Professional Natural Scientist (400136/09) with the South African Council for Natural Scientific Professions. Mr Justin Osborne, Executive Director - Discovery and Growth for Gold Road and Mr John Donaldson, General Manager Geology for Gold Road have endorsed the Mineral Resource for Gruyere on behalf of Gold Road.
Mr Osborne is an employee of Gold Road and a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM 209333). Mr Osborne is a shareholder and a holder of Performance Rights.
Mr Donaldson is an employee of Gold Road and a Member of the Australian Institute of Geoscientists and a Registered Professional Geoscientist (MAIG RPGeo Mining 10147). Mr Donaldson is a shareholder and a holder of Performance Rights.
The information in this report that relates to the Mineral Resource estimation for Attila, Orleans, Argos, Montagne, Alaric, YAM14, Central Bore, Gilmour and Renegade is based on information compiled by Mr Justin Osborne, Executive Director - Discovery and Growth for Gold Road, Mr John Donaldson, General Manager Geology for Gold Road and Mrs Jane Levett, former Principal Resource Geologist for Gold Road.
Mrs Levett was an employee of Gold Road and is a Member of the Australasian Institute of Mining and Metallurgy and a Chartered Professional (MAusIMM CP 112232).
Messrs Roux, Osborne and Donaldson and Mrs Levett have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as Competent Persons as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Messrs Roux, Osborne and Donaldson and Mrs Levett consent to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Ore Reserves
The information in this report that relates to the Ore Reserve estimation for Gruyere is based on information compiled by Mr Daniel Worthy. Mr Worthy was an employee of Gruyere Mining Company Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM 208354). Mr Max Sheppard, Principal Mining Engineer for Gold Road has endorsed the Ore Reserve estimation for Gruyere on behalf of Gold Road.
Mr Sheppard is an employee of Gold Road and is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM 106864).
The information in this report that relates to the Ore Reserve estimation for Attila, Argos, Montagne and Alaric, is based on information compiled by Mr Max Sheppard, Principal Mining Engineer for Gold Road.
Mr Worthy and Mr Sheppard have sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Worthy and Mr Sheppard consent to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
New Information or Data
Gold Road confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources and Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not materially changed from the original market announcement.
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MINERAL RESOURCE TABLE – DECEMBER 2019
Gruyere Project Joint Venture - 100% basis Gold Road Attributable
Project Name / CategoryTonnes Grade Contained Metal Tonnes Grade Contained Metal
(Mt) (g/t Au) (Moz Au) (Mt) (g/t Au) (Moz Au)Gruyere Total 137.95 1.31 5.79 68.97 1.31 2.90Measured 14.55 1.09 0.51 7.27 1.09 0.26Indicated 118.19 1.33 5.05 59.10 1.33 2.52Measured and Indicated 132.74 1.30 5.56 66.37 1.30 2.78 Inferred 5.21 1.39 0.23 2.61 1.39 0.12Golden Highway + YAM14 Total 15.57 1.46 0.73 7.78 1.46 0.36Measured 0.29 1.99 0.02 0.14 1.99 0.01Indicated 11.33 1.48 0.54 5.67 1.48 0.27Measured and Indicated 11.62 1.50 0.56 5.81 1.50 0.28Inferred 3.95 1.33 0.17 1.98 1.33 0.08Central Bore 0.24 13.05 0.10 0.12 13.05 0.05Measured - - - - - -Indicated - - - - - -Measured and Indicated - - - - - -Inferred 0.24 13.05 0.10 0.12 13.05 0.05Total Gruyere JV 153.76 1.34 6.62 76.88 1.34 3.31Measured 14.84 1.11 0.53 7.42 1.11 0.26 Indicated 129.52 1.34 5.59 64.76 1.34 2.79 Measured and Indicated 144.36 1.32 6.12 72.18 1.32 3.06 Inferred 9.40 1.66 0.50 4.70 1.66 0.25
Continued on following slide
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Gruyere Project Joint Venture - 100% basis Gold Road Attributable
Project Name / CategoryTonnes Grade Contained Metal Tonnes Grade Contained Metal
(Mt) (g/t Au) (Moz Au) (Mt) (g/t Au) (Moz Au)Renegade - - - 0.93 1.30 0.04Measured - - - - - -Indicated - - - - - -Measured and Indicated - - - - - -Inferred - - - 0.93 1.30 0.04Gilmour OP - - - 1.82 2.21 0.13Measured - - - - - -Indicated - - - 0.42 5.81 0.08Measured and Indicated - - - 0.42 5.81 0.08Inferred - - - 1.40 1.13 0.05Gilmour UG - - - 0.78 5.13 0.13Measured - - - - - -Indicated - - - 0.30 4.33 0.04Measured and Indicated - - - 0.30 4.33 0.04Inferred - - - 0.49 5.62 0.09Total Gold Road 100% Owned - - - 3.53 2.62 0.30Measured - - - - - -Indicated - - - 0.72 5.20 0.12Measured and Indicated - - - 0.72 5.20 0.12Inferred - - - 2.82 1.96 0.18
Total Gold Road Attributable - - - 80.41 1.40 3.61
Measured - - - 7.42 1.11 0.26
Indicated - - - 65.48 1.38 2.91
Measured and Indicated - - - 72.90 1.36 3.18
Inferred - - - 7.52 1.77 0.43
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ORE RESERVE TABLE – DECEMBER 2019
NOTES FOR MINERAL RESOURCE AND ORE RESERVE TABLES All Mineral Resources and Ore Reserves are completed in accordance with the JORC Code 2012 Edition All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding. All dollar amounts are in Australian dollars Mineral Resources are inclusive of Ore Reserves. Gruyere Measured category includes Surface Stockpiles. Gruyere Proved category includes Surface Stockpiles. Mineral Resources and Ore Reserves are
depleted for mining The Gruyere JV is a 50:50 joint venture between Gold Road and Gruyere Mining Company Pty Limited, a wholly owned Australian subsidiary of Gold Fields Ltd. Figures are reported on a 100% basis unless
otherwise specified Gold Road holds an uncapped 1.5% net smelter return royalty on Gold Fields’ share of production from the Gruyere JV once total gold production from the Gruyere JV exceeds 2 million ounces All Open Pit Mineral Resources are reported at various cut-off grades allowing for processing costs, recovery and haulage to the Gruyere Mill. Gruyere - 0.37 g/t Au. Attila, Argos, Montagne, Orleans, and
Alaric – 0.50 g/t Au. YAM14 – 0.40 g/t Au. All Open Pit Mineral Resources are constrained within a A$1,850/oz optimised pit shell derived from mining, processing and geotechnical parameters fromongoing PFS and operational studies. Underground Mineral Resources at Central Bore are constrained within a 1.5m wide optimised stope with a 3.5 g/t Au cut-off reflective of a A$1,850/oz gold price
The Ore Reserves are constrained within a A$1,600/oz mine design derived from mining, processing and geotechnical parameters as defined by Pre-feasibility Studies and operational studies. The OreReserves are evaluated using variable cut-off grades: Gruyere - 0.30 g/t Au. Attila - 0.65 g/t Au (fresh), 0.58 g/t Au (transition), 0.53 g/t Au (oxide). Alaric - 0.59 g/t Au (fresh), 0.56 g/t Au (transition), 0.53 g/tAu (oxide), Montagne – 0.64 g/t Au (fresh), 0.60 g/t Au (transition), 0.58 g/t Au (oxide), Argos – 0.66 g/t Au (fresh), 0.64 g/t Au (transition), 0.59 g/t Au (oxide). Ore block tonnage dilution and miningrecovery estimates: Gruyere - 7% and 98%. Attila - 14% and 97%. Alaric - 20% and 94%. Montagne – 9% and 93%. Argos 10% and 88%
Gruyere Project Joint Venture – 100% Basis Gold Road Attributable
Project Name / CategoryTonnes
(Mt)Grade
(g/t Au)Contained Metal
(Moz Au)Tonnes
(Mt)Grade
(g/t Au)Contained Metal
(Moz Au)
Gruyere Total 86.84 1.22 3.41 43.42 1.22 1.71
Proved 14.40 1.05 0.49 7.20 1.05 0.24
Probable 72.44 1.26 2.93 36.22 1.26 1.46
Golden Highway Total 6.54 1.46 0.31 3.27 1.46 0.15Proved 0.32 1.67 0.02 0.16 1.67 0.01Probable 6.22 1.45 0.29 3.11 1.45 0.15Total Gruyere JV 93.38 1.24 3.72 46.69 1.24 1.86
Proved 14.73 1.06 0.50 7.36 1.06 0.25
Probable 78.66 1.27 3.22 39.33 1.27 1.61